Health Net 2011 Annual Report Download - page 110

HEALTH NET, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended December 31,
2011 2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ................................................. $ 72,120 $ 204,243 $ (49,004)
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Amortization and depreciation ................................... 32,209 34,800 53,042
Asset impairment charges ....................................... — 6,000 187,263
(Adjustment to loss) loss on sale of business ........................ (40,815) (41,959) 105,931
Share-based compensation expense ............................... 27,602 33,112 11,714
Deferred income taxes ......................................... 7,771 37,164 (1,913)
Excess tax benefit on share-based compensation ..................... (1,349) (571) (23)
Net realized (gain) loss on investments ............................ (33,029) (23,019) (45,319)
Other changes ................................................ 21,485 (21,413) 26,690
Changes in assets and liabilities, net of effects of acquisitions and dispositions:
Premiums receivable and unearned premiums ....................... 65,221 12,548 (26,644)
Other current assets, receivables and noncurrent assets ................ (54,031) 27,590 (6,965)
Amounts receivable/payable under government contracts .............. 32,754 27,404 (8,602)
Reserves for claims and other settlements .......................... (29,898) (9,631) (162,735)
Accounts payable and other liabilities ............................. 3,340 21,770 (776)
Net cash provided by operating activities .............................. 103,380 308,038 82,659
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales of investments ............................................... 1,760,336 1,118,957 1,785,741
Maturities of investments ........................................... 189,137 199,425 191,597
Purchases of investments ........................................... (1,814,431) (1,582,851) (1,923,692)
Sales of property and equipment ..................................... — 19 3,847
Purchases of property and equipment .................................. (64,260) (34,791) (25,342)
Cash divested related to the sale of businesses, net of cash received .......... — — (173,422)
Purchase price adjustment on sale of Northeast Health Plans ............... 162,101 76,126 —
(Purchases) sales of restricted investments and other ..................... (10,656) 22,522 6,097
Net cash provided by (used in) investing activities ....................... 222,227 (200,593) (135,174)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options and employee stock purchases ....... 13,356 3,644 1,354
Excess tax benefit on share-based compensation ......................... 1,349 571 23
Repurchases of common stock ....................................... (389,850) (236,847) (14,150)
Borrowings under financing arrangements .............................. 978,500 100,000 80,000
Repayment of borrowings under financing arrangements .................. (872,212) (316,771) (164,984)
Net (decrease) increase in checks outstanding, net of deposits .............. (46,718) 45,909 —
Customer funds administered ........................................ (129,917) (36,616) 164,874
Net cash (used in) provided by financing activities ....................... (445,492) (440,110) 67,117
Net (decrease) increase in cash and cash equivalents ...................... (119,885) (332,665) 14,602
Cash and cash equivalents, beginning of year ........................... 350,138 682,803 668,201
Cash and cash equivalents, end of year ................................ $ 230,253 $ 350,138 $ 682,803
SUPPLEMENTAL CASH FLOWS DISCLOSURE:
Interest paid ..................................................... $ 31,332 $ 31,074 $ 27,904
Income taxes paid ................................................. 55,882 96,319 71,396
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES:
Imputed interest discounts and deferred revenues ........................ $ — $ — $ 31,581
Accretion of deferred revenues into earnings ............................ 2,738 47,273 7,664
Amortization of discounts into earnings ................................ 10,429 22,037 8,790
See accompanying notes to consolidated financial statements.
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